subject: Different Services Offered By Payroll Vendors. [print this page] A payroll service provider can give a lot of services that helps both employers and employees of a business. People think that processing payment is the service provided by the payroll services. Other than that they offer a whole lot of services. Here are some of the common services a payroll vendor offers to its clients:
Tax calculation Most of the reputed vendors offer computation of employment taxes, including state and federal income tax, social security, or FICA tax and unemployment tax. Some state and federal income tax calculations are very complex. The vendor will calculate depending on the employees financial situation, then file appropriate paper works and pay tax on behalf of the employee.
Reporting This is another major service done by NJ Payroll Services. They will calculate costs by employee, by project, by client, then the amount will be calculated with working hours of each employee and make it as a report. They will prepare the bill for each day by including other factors like employee overtime pay, holiday pay, sick leave etc. By having a detailed report of employees working on each project, it will be easy to see where most of your employee costs are being distributed. This will help in planning something better for the future and save costs where ever needed.
Additional Reports Some Payroll Services provide additional reports that can be generated to suit clients requirements. Some of the payroll reports include - 401K report with both employee and employer contributions payroll by job, payroll by department, certified payroll reports, new hire report, employee gross earnings, net earnings including employer tax summary and many more.
Direct Deposit Most of the large companies will have a direct deposit account which can be used by payroll vendors for company purposes. Earlier business house was paying the monthly salary and other payments as cash or cheque. With the introduction of payroll vendor services, the companies just have to deposit the total cash that must be given to the employees and other partners in a direct account. The rest of the work, like calculating each employees payment, deducting tax and depositing the payment amount in the employees account will be done by payroll processing companies. Earlier business houses had to deal with all these, and the process had taken a great amount of time. Now the payment will reach the employees account without any delay and the employees also appreciate this effort.
Access to Online Payroll services The software used by NJ Payroll Services stores complete details of employees in an electronic format. This helps employees to view their pay details online. Earlier business houses have to give receipts, cost report, pay slip etc, in paper format. The introduction of payroll software eliminated the need to save records and provide receipts in paper format, thereby saving paper, space and time. Moreover information saved in electronic format cannot be destroyed easily. Several companies even give the option to divert the paycheck into an account with its own debit card. Overall, a payroll vendor gives employees more control over their information.
